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Fannie Ex-CEO to Get
$2.6 Million Payment

a Wall Street Journal Staff Reporter

Updated Nov. 15, 2006 12:01 a.m. ET

Fannie Mae said it will pay $2.6 million to Franklin D. Raines as a partial settlement of a dispute between the mortgage-finance company and Mr. Raines, who was ousted as chairman and chief executive nearly two years ago.

Fannie's board forced the early retirement of Mr. Raines in December 2004 after regulators alleged that the Washington, D.C.-based company had violated accounting rules, partly in an effort to fatten executive...